ASIC nails another solicitors mortgage scheme
The Australian Securities and Investments Commission’s (ASIC) continuing campaign against solicitors mortgage schemes received another shot in the arm yesterday, with the regulator winning another victory in court against the operators of such a scheme.
Receivers have been appointed to a scheme that was operated by a Sydney based law firm, Elliot Tuthill, and the companies Takaran, Takaran 2 and Takaran 3, after ASIC successfully applied to the Supreme Court of New South Wales to such effect.
The partners of Elliot Tuthill, David Arthur Jordan and Jack Leonard Jordan, who are directors of the Takaran companies, had used the three companies to operate the scheme.
Justice Barrett made orders to wind up the mortgage loans that comprised the Scheme. Andrew Love and Robyn Duggan, of Ferrier Hodgson, were appointed as receivers of the scheme.
The Jordans and the Takaran companies did not oppose the orders for the winding up of the scheme.
The orders made do not effect the Elliot Tuthill legal practice, or the Elliot Tuthill Mortgage Fund, which is operated by Elliot Tuthill Mortgages.
Over the last two years, the number of solicitor’s mortgage schemes has fallen from 6,000 to less than 400 as a result of an ASIC crackdown.
The crackdown resulted from ASIC investigations which indicated that around half of all solicitors mortgage scheme were in default.
The Jordans were ordered to pay ASIC's costs in the case.
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